Executive summary: In the today’s competitive market it is essential to sustain through different strategies. Development of information technology is very significant because today the world is largely depended on information. The American airline is one of them, in 1950s it was become the popular airlines and travel agency in the USA and the flow of improvement of it is continued up to 1970s. The American airlines fell into the deep problem because there were a lot of competition among the airlines and many airlines were emerged into the USA. The information technologies development and its strategies make the company in the today’s position.
Introduction: Information technology (IT) development strategy is needed when the structure of a business is changed or a business is faced with a competitive environment. A business can be operated very easily by using modern and special IT strategy. Because of the blessing of modern science & technology many instrument has been emerged and by the proper utilization of IT technology many business has become more efficient in providing services & service related fields.
(a) Describe how the overall approach adopted by American Airlines incorporated basic competitive strategies of cost leadership, innovation and product differentiation.
Adaptation approaches of American Airlines by using SABRE: SABRE (Semi automated business research environment) computer system is used by lots of airlines in the world including American Airlines to search price , tickets, book ,rent of car, rent of hotel, tour operator , and other related service that are provided by an airline.
In 1950s American airlines was faced with a great problem because all the procedures that are related to airlines business was done by manual. According to Jon (2012) As a result it was challenging for American airlines to cope with competitors by providing superior service to customers. But when American airline was gone to use the SABRE the...